DNR – The Business of CO2-EOR & Impediments to CCUS Carbon/CO2-EOR Conference Midland, TX - December 2016 NYSE:DNR Cautionary Statements Forward Looking Statements: The data and/or statements contained in this presentation that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements may be or may concern, among other things, financial forecasts, future hydrocarbon prices and timing and degree of any price recovery versus the length or severity of the current commodity price downturn, current or future liquidity sources or their adequacy to support our anticipated future activities, our ability to reduce our debt levels, possible future write-downs of oil and natural gas reserves, together with assumptions based on current and projected oil and gas prices and oilfield costs, current or future expectations or estimations of our cash flows, availability of capital, borrowing capacity, future interest rates, availability of advantageous commodity derivative contracts or the predicted cash flow benefits therefrom, forecasted capital expenditures, drilling activity or methods, including the timing and location thereof, estimated timing of commencement of CO2 flooding of particular fields or areas, or the timing of pipeline or plant construction or completion or the cost thereof, dates of completion of to-be-constructed industrial plants and the initial date of capture of CO2 from such plants, timing of CO2 injections and initial production responses in tertiary flooding projects, acquisition plans and proposals and dispositions, development activities, finding costs, anticipated future cost savings, capital budgets, interpretation or prediction of formation details, production rates and volumes or forecasts thereof, hydrocarbon reserve quantities and values, CO2 reserves and supply and their availability, helium reserves, potential reserves, barrels or percentages of recoverable original oil in place, the impact of regulatory rulings or changes, anticipated outcomes of pending litigation, prospective legislation affecting the oil and gas industry, mark-to-market values, competition, long-term forecasts of production, rates of return, estimated costs, estimates of the range of potential insurance recoveries, changes in costs, future capital expenditures and overall economics, worldwide economic conditions and other variables surrounding our operations and future plans. Such forward-looking statements generally are accompanied by words such as “plan,” “estimate,” “expect,” “predict,” “forecast,” “to our knowledge,” “anticipate,” “projected,” “preliminary,” “should,” “assume,” “believe,” “may” or other words that convey, or are intended to convey, the uncertainty of future events or outcomes. Such forward-looking information is based upon management’s current plans, expectations, estimates, and assumptions and is subject to a number of risks and uncertainties that could significantly and adversely affect current plans, anticipated actions, the timing of such actions and our financial condition and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by us or on our behalf. Among the factors that could cause actual results to differ materially are fluctuations in worldwide oil prices or in U.S. oil prices and consequently in the prices received or demand for our oil and natural gas; decisions as to production levels and/or pricing by OPEC in future periods; levels of future capital expenditures; effects of our indebtedness; success of our risk management techniques; inaccurate cost estimates; availability of and fluctuations in the prices of goods and services; the uncertainty of drilling results and reserve estimates; operating hazards and remediation costs; disruption of operations and damages from well incidents, hurricanes, tropical storms, or forest fires; acquisition risks; requirements for capital or its availability; conditions in the worldwide financial and credit markets; general economic conditions; competition; government regulations, including tax and environmental; and unexpected delays, as well as the risks and uncertainties inherent in oil and gas drilling and production activities or that are otherwise discussed in this quarterly report, including, without limitation, the portions referenced above, and the uncertainties set forth from time to time in our other public reports, filings and public statements including, without limitation, the Company’s most recent Form 10-K. Note to U.S. Investors: Current SEC rules regarding oil and gas reserves information allow oil and gas companies to disclose in filings with the SEC not only proved reserves, but also probable and possible reserves that meet the SEC’s definitions of such terms. We disclose only proved reserves in our filings with the SEC. Denbury’s proved reserves as of December 31, 2014 and December 31, 2015 were estimated by DeGolyer and MacNaughton, an independent petroleum engineering firm. In this presentation, we may make reference to probable and possible reserves, some of which have been estimated by our independent engineers and some of which have been estimated by Denbury’s internal staff of engineers. In this presentation, we also may refer to estimates of original oil in place, resource or reserves “potential”, barrels recoverable, or other descriptions of volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible (2P and 3P reserves), include estimates of resources that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates, as well as the estimates of probable and possible reserves, are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk. NYSE:DNR 2 A Different Kind of Oil Company ~6.7 Tcf 1,100 Gross proved Over CO2 reserves miles of CO2 As of 12/31/2015 pipelines Operating Areas 3Q16 Tertiary Production Produced over Denbury’s Profile: 37,199 135 Million Bbls/d gross barrels from » CO2 enhanced oil recovery (“CO2 EOR”) is our EOR to date core focus 3Q16 Total Production » We have uniquely long-lived and lower-risk 61,533 918 BOE/d assets with extraordinary resource potential Million » Owning and controlling the CO2 supply and 2015 Proved Reserves Barrels (net) infrastructure provides our strategic advantage 289 MMBOE EOR Resource Potential » “We bring old oil fields back to life!” ~98% oil NYSE:DNR 3 CO2 EOR Process (1) CO2 EOR delivers almost as much production as primary or secondary recovery Recovery of Original Oil in Place (“OOIP”) Primary ~ 20% Secondary ~ 18% (Waterfloods) CO2 EOR ~ 17% (Tertiary) CO2 Oil Bank Remaining oil Oil expands and Injected CO2 moves toward encounters trapped oil (1) Based on OOIP at Denbury’s Little Creek Field producing well NYSE:DNR 4 U.S. Lower-48 CO2 EOR Potential Up to 83 Billion Barrels of Technically Recoverable Oil(1)(2) 33-83 Billion of Technically Recoverable Oil(1,2) (amounts in billions of barrels) Permian 9-21 East & Central Texas 6-15 Mid-Continent 6-13 California 3-7 South East Gulf Coast 3-7 Rockies 2-6 Other 0-5 Michigan/Illinois 2-4 Williston 1-3 Appalachia 1-2 1) Source: 2013 DOE NETL Next Gen EOR. 2) Total estimated recoveries on a gross basis utilizing CO2 EOR. NYSE:DNR 5 (1) Up to 16 Billion Gross Barrels Recoverable in Our Two CO2 EOR Target Areas MT ND 2.8 to 6.6 Billion Barrels WY Estimated Recoverable in Rocky Mountain Region(2) Denbury-operated fields represent ~10% of total potential(3) MS AL Existing Denbury CO2 Pipelines TX LA Proposed Denbury CO2 Pipelines Denbury owned fields Existing or Proposed CO2 Source Owned or 3.7 to 9.1 Contracted Billion Barrels 1) Total estimated recoveries on a gross basis utilizing CO2 EOR, based on a variety of recovery factors. Estimated Recoverable in 2) Source: 2013 DOE NETL Next Gen EOR Gulf Coast Region(2) 3) Using approximate mid-points of ranges, based on a variety of recovery factors. NYSE:DNR 6 CO2 EOR in Gulf Coast Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Delhi(3) Tinsley(3) 45 MMBOEs 46 MMBbls (1) Summary Tinsley Jackson Dome Proved 144 Free State Pipeline Potential 396 Delhi Davis (2) HeidelbergQuitman (2) Produced-to-Date 113 Lake St. John Martinville West Gwinville Sandersville Summerland Cypress (3) Soso Total MMBOEs 653 (3) Pipeline Creek Conroe Eucutta Yellow Creek Brookhaven Cranfield Mallalieu 130 MMBbls Olive Citronelle (3) Little Creek Houston Area Mature Area(3) Smithdale Hastings 60 - 80 MMBbls McComb 170 MMBbls Webster 60 - 75 MMBbls ~90 Miles Thompson 30 - 60 MMBbls Lockhart Heidelberg(3) Cost: ~$220MM Crossing Manvel 8 - 12 MMBbls 44 MMBbls 158 - 227 MMBbls Conroe Green Pipeline Donaldsonville ~325 Miles Webster Oyster Bayou(3) Thompson 20-30 MMBbls Manvel Oyster Bayou Hastings Cumulative Production 15 – 50 MMBoe Pipelines 50 – 100 MMBoe Denbury Operated Pipelines > 100 MMBoe Denbury Proposed Pipelines Denbury Owned Fields – Current CO2 Floods 1) Proved tertiary oil reserves based on year-end 12/31/15 SEC proved reserves. Potential includes probable and possible tertiary reserves estimated as of 12/31/14, using mid-point of ranges, based on a variety of recovery factors